Legal & General's Billion-Dollar Bet on Nature Conservation

Legal & General, Britain's largest asset manager, has announced a significant commitment of up to $1 billion over the next five years to support 'debt-for-nature' swaps in developing countries, as reported to Reuters.

The innovative debt-for-nature swaps, which intend to channel funds typically earmarked for debt payments into conservation efforts, have seen dwindling activity following the reduction of U.S. government support under President Donald Trump's administration. Legal & General aims to rejuvenate this market, with past investments in Ecuador's Galapagos Islands, Belize, and Gabon.

Enosis Capital, a specialist firm leading this initiative, along with partners such as environmental organizations and insurance firm AXA XL, will offer essential political risk coverage. This collaboration will bolster efforts to establish Legal & General as a key player in the upcoming debt swap transactions.